19/01/14 - Parties prepare for early election

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Opposition parties say they are readying themselves for an early election amid new speculation John Key will go to the polls in September or early October.

Sources say Key wants to hold the election before November's G20 leaders' meeting in Brisbane and Apec Summit in Beijing.

He will also want to avoid clashing with home All Black games in August and early September, the final Bledisloe Cup test on October 18, and Labour Weekend, the final weekend of October.

Pundits are betting on September 27 or one of the first two Saturdays in October.

Yesterday, Labour leader David Cunliffe said: "I wouldn't rule out that National will go considerably earlier than that if they feel desperate. This is an election that we are ready to fight.

"Nothing is surer than the fact that John Key wants to strut the world stage at the G20, and he can't do that under the shadow of an election campaign," he said.

"I'm expecting it will be my first G20 invite, and I'm expecting the election will be before that."

Labour trails National in the polls, but has a probable coalition partner in the Greens.

Cunliffe said he would be happy to be sworn in as a Labour prime minister with fewer seats than National, relying instead on the support of the Greens.

"The prime minister should be the leader of the governing coalition. The governing coalition should have the most seats in Parliament. That is the constitutional position and the proper one."

Kim Dotcom would not speculate on an election date but said "We will be ready."

(Source NZ Herald)

19/12/13 - Overstayer numbers drop to new low

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Immigration Minister Michael Woodhouse has welcomed new figures showing New Zealand overstayer numbers are continuing to fall. 

“A new report estimates 13,151 overstayers are living in New Zealand. This is the lowest number this century, down 893 (6.3%) from last year, and 33 per cent lower than the 2005 estimate of nearly 20,000,” Mr Woodhouse says.

The estimated rate of overstaying (the number of overstayers compared with the number of temporary arrivals) is now very small by international standards at around 5 in 10,000 (0.05%).

“At the same time, removal and deportation costs have nearly halved from $3.00 million in 2005/06 to $1.53 million in 2012/13, which represents significant savings for the taxpayer.

“Better systems and more coordination between government agencies saw more than 1600 people denied boarding at the airport last year as they did not meet entry requirements – the most ever. Those being refused entry at the border has almost halved since 2005.

“Voluntary departures have significantly increased over this period, as the government continues to encourage overstayers to settle their affairs and pay their own costs for departure, or face sanctions and bans from returning.

“In short, we’re preventing more high-risk travellers arriving in New Zealand in the first place, and we’re seeing those who do overstay are much more likely to pay for their own departure.”

Mr Woodhouse says the figures are also a testament to the work being done by staff at Immigration New Zealand (INZ) and the Government’s focus on preventing and ensuring decisive action is taken against overstayers.

“People unlawfully in New Zealand are case-managed according to their circumstances, with those engaged in criminality being the highest priority for removal.

“It is important to point out that the majority of those who are in New Zealand unlawfully are not criminals and remain here beyond the term of their visas for a number of reasons such as employment and family.

“Providing better public services is a priority area for the Government. These results are an example of agencies working better and smarter, with less expense to the taxpayer.” 

Anyone with information about people unlawfully in New Zealand can contact Immigration New Zealand on 0508 55 88 55.

(Source Beehive, Michael Woodhouse)

15/12/13 - Bernard Hickey: 'Dutch disease' drives rash of losses Downunder

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The festering symptoms of "Dutch disease" have burst into a rash of losses across the Australian and New Zealand economies this week.

The Economist coined the term in the 1970s after Holland discovered natural gas in the North Sea. Gas revenues pushed up the Dutch guilder, hurting its manufacturing sector. Now Australia and New Zealand are experiencing the disease, thanks to demand from China.

Australia's iron ore boom over the past five years drove up its dollar by a third; New Zealand's free-trade agreement with China in 2008 unleashed huge demand for milk powder, which also pushed up the NZ dollar by about one-third.

This week, events on both sides of the Tasman crystallised just how much Dutch disease has changed our economies. Dutch disease is likely to end decades of V8 rivalry between Holden and Ford. This week Holden announced it was ending manufacturing in Australia because the high dollar and high wages made it more viable to build Commodores in China.

Ford announced in May it was leaving Australia.

That means the loss of about 200,000 Australian jobs.

The softness in Australia's job market is rebounding here, too, as net inwards migration climbs. Fewer Kiwis are leaving for jobs as mining slows, and plenty of New Zealand-born Aussies are coming home, too.

Another effect of Dutch disease was revealed this week by Fonterra when it forecast a halving of its profit and a 22c cut in its dividend. It also froze its forecast milk payout at $8.30/kg, which seems counter-intuitive given Chinese demand for milk powder is exploding. Fonterra normally sets the milk price it pays to farmers based on global milk-powder prices. They have run far ahead of cheese and butter prices, which means Fonterra must "over-pay" for the 30 per cent of milk it processes into the lower-priced cheese and butter. This has slashed $800 million from Fonterra's profit.

The last effect of the disease was revealed this week when the Reserve Bank included a scenario in its monetary policy statement that would see New Zealand's terms of trade (which measures the "power" of our exports to buy a certain amount of imports) fixed at its current 40-year highs.

The bank estimated it would have to hike interest rates even more to keep inflation under control. This would see mortgage rates rise to 8.5 per cent within years, rather than the 8 per cent currently indicated.

(Source, Herald on Sunday)

13/12/13 - Additional Questions and Answers

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General questions:

Q: Why were the business policies reviewed?

A: Business migration policies, for people seeking to establish a business, have not been extensively reviewed since 1999 so a review was needed to ensure they are working as well as possible. The review has shown that business migrants can bring to New Zealand considerable commercial expertise and access to global commercial networks. They are also investing additional funds over and above the sum they need to invest for immigration purposes. The review has found that the policies can be improved to attract even more high-calibre migrants who can make a significant contribution to the economy. The changes are designed to ensure that migrants know that there is a pathway in place to those coming to New Zealand to set up a productive business.

Q: What is happening as a result of that review?

A:The Long Term Business Visa is being discontinued, and will be replaced by a new visa for business migrants likely to be called the Entrepreneur Work Visa. The new visa will be designed to attract business migrants who can create high growth and innovative businesses with export potential. Immigration New Zealand will only accept Long Term Business Visa applications until 4pm on 20 December 2013.

Q: What are the details of the new visa? When will more information about this new visa be available?

A: The detailed criteria for the new visa are currently being drafted, and will go into effect in March 2014. The full details will be made public before March 2014 to help business people and immigration advisers put together applications that will fit the aims of the new category.

The broad criteria for the new visa have been agreed by Cabinet (the Cabinet paper is available online). The new policy will:

• Have a minimum $100,000 capital investment requirement, excluding working capital
• Establish a new points-based system to actively assess intending business migrants and to choose those who can create high growth and innovative businesses, with points for:
  • business experience;
  • employment creation;
  • export potential 
  • innovation;
  • capital investment;
  • age;
• a plan to invest outside of Auckland (migrants would also need to reside outside of Auckland); and
• having undertaken market research, or having the endorsement of a chamber of commerce, an economic development agency, or any other relevant government agency.
• Enable senior immigration staff to allow for discretion to waive the minimum capital requirement of $100,000, in exceptional cases, for applicants proposing to establish a science or ICT-based business, or other export-oriented sector, where it displays a high level of innovation or has credible short-term high growth prospects.
• Clarify that applicants for a visa in the Entrepreneur Work Visa category may only submit a change in the business plan for their business once, and that changes must be minimal otherwise a new application will be needed.

Click here to view the proposed Points Table

Q: Why is a points system and a minimum capital investment of $100,000 being introduced for the new Entrepreneur Work Visa being introduced?

A: The review found that a significant number of businesses created under the Long Term Business Visa had limited export growth potential. The introduction of a points system and a minimum capital investment figure of $100,000 are designed to ensure that successful applicants can create high growth and innovative businesses with export potential. A points system also ensures that policy criteria are clear and transparent.

Q: Why will there be a moratorium on new applications under the Entrepreneur Work Visa?

A: Knowledge of the review has been widespread within the immigration adviser community. A moratorium is designed to prevent a surge applications being made in the run up to the changes. But the Ministry will be consulting closely with advisers and other interested parties to ensure that new Immigration Instructions are workable.

Questions for people who hold, have applied for, or are planning to apply for a Long Term Business Visa:

Q: Will there be any impact on people who have already applied for a Long Term Business Visa?

A: No. People who have already made an application under the old policy will continue to be processed under that policy.

Q: What about people who currently hold a Long Term Business Visa? Will this have an impact on their ability to gain residence under Entrepreneur Category?

A: People who are on a Long Term Business Visa and who are ready to apply for residence under Entrepreneur category will still be able to do this. This is because the Entrepreneur category is not being revoked. It will be renamed and slightly amended in March 2014. The main change will be that the Entrepreneur Plus category will be disestablished and included in the Entrepreneur Category, but this will not disadvantage any Long Term Business Visa holders transitioning to residence.

Q: What about people who currently hold a Long Term Business Visa who want to change their business plan or need get the balance of their three years?

A: Long Term Business Visa holders will continue to be able to apply for and be granted the balances of their three year visa or permission to change their business plan, as these are not new visas but continuations of the existing Long Term Business Visa.

Long Term Business Visa holders who anticipate that they might need a renewal of their visa will need to contact the Business Migration Branch management team to discuss their circumstances. In order to be approved they would need to be close to the end of their Long Term Business Visa and have a genuine and compelling reason for why they are not able to apply for residence under Entrepreneur policy yet.

Q: Why do people only have five days to lodge applications under the existing LTBV policy? What will happen to applications sent in after the five days is up?

A: The five day notice period has been set in place to prevent a surge in applications being made in the run up to the changes. All applications lodged within this five day period must be received in the office by Business Migration Branch by 4pm on Friday 20 December. Any applications received after this time will be returned.

Q: If the Business Migration Branch receives a Long Term Business Visa application that does not contain all necessary documents in the five days before the moratorium begins, will they hold the application waiting for the documents, or will they return it as per usual practice?

A: During the five day period the Business Migration Branch will use their discretion to accept for lodgement any exceptionally high quality Long Term Business Visa applications which are missing key documents, such as police certificates or medicals. This is entirely up to the discretion of Business Migration Branch management. No incomplete applications will be accepted without a comprehensive and specific business plan, including a signed sale and purchase agreement and other evidence as required to show that the plans for the business are at an advanced stage and are for a business that will benefit New Zealand.

Q: What can people who want to a visa to be self-employed do in the meantime? Do they have any options?

A: No self-employed work visa will be available for the period between the closure of Long Term Business Visa and opening of the new category.

People who are interested in applying for a visa to start their own business in New Zealand are advised to put their efforts into market research and compiling a strong business plan that will have a good chance of being approved under the new category.

People who want to visit New Zealand for market research or to source business opportunities may be able to get a visitor visa as a business visitor. Business visitor’s visas have a maximum period of three months. Holders of business visitor’s visas are not permitted to work in New Zealand.

13/12/13 - Questions and Answers

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Questions and Answers

Q: Why do we have business migration policies?

A: Business migration policies provide a point of difference to other mechanisms for bringing people with experience of running their own business into New Zealand.  As well as supplying capital, both policies can also bring in people with new ideas, entrepreneurial flair, overseas networks, and business experience. 

Q: Have the policies been successful?

A: The policies currently attract over 500 migrants per year, who come to New Zealand to gain residence through establishing or expanding a business. These policies have the potential to better contribute to New Zealand’s economic development and support the Business Growth Agenda.

Q: Why were the policies reviewed?

A: Business migration policies, for people seeking to establish a business, have not been extensively reviewed since 1999 so a review was needed to ensure they are working as well as possible.  The review has shown that business migrants can bring to New Zealand considerable commercial expertise and access to global commercial networks. But the review has found that the policies can be improved to attract even more high-calibre migrants who can make a significant contribution to the economy. The changes are designed to ensure that migrants know that there is a pathway in place to those coming to New Zealand to set up a productive business. 

Q: How would you define a successful migrant business?

A: A successful migrant business would have a combination of some or all of the following: is innovative; brings in new technology; employs New Zealanders; supports effective domestic competition; and has good growth prospects.  Ideally, the business would also create exportable products and services that do not already exist in our market.

Q: Why are you introducing a points system and a minimum capital investment of $100,000 for the new Entrepreneur Work Visa?

A: The review found that a significant number of businesses created under the Long Term Business Visa had limited export growth potential. The introduction of a points system and a minimum capital investment figure of $100,000 are designed to ensure that successful applicants can create high growth and innovative businesses with export potential. However, exemptions are possible on a case-by-case basis should a business model not require such an investment (ie a web-based IT start-up). A points system also ensures that policy criteria are clear and transparent. 

Q: Why will points be offered for businesses outside of the Auckland region?

A: It’s well known that Auckland attracts a large share of new migrants each year. By incentivising potential applicants to consider investing and starting businesses in regions around New Zealand, it helps share the benefits of newly created jobs and investment across the country.

Click here to view the proposed Points Table

Q: What are you doing to make it easier to apply under these policies?

A: INZ is developing an online eligibility calculator on its website to enable prospective applicants to assess their likelihood of success before committing to an application. It’s essential that prospective applicants have all the information they need at their disposal so they know exactly what they’ve got to do.

Q: When will the current Long Term Business Visa category close and the new policies come into effect?

A: The LTBV category will close on Friday 20 December. The new Entrepreneur visa policies will open in March 2014.

13/12/13 - Business visa changes to create jobs & growth

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Immigration Minister Michael Woodhouse has announced a new business visa policy to encourage migrants to set up high-quality businesses in New Zealand to help create local jobs and support economic growth.

“New Zealand needs to attract talented, enterprising, well-connected business people to invest and grow businesses in New Zealand,” Mr Woodhouse says.

“That’s why a new Entrepreneur Work Visa will replace the current Long-Term Business Visa, which has not been significantly changed since 1999 and has attracted a large number of low-quality applications.

“The Entrepreneur Work Visa will operate under a new points-based system that will result in higher quality, more productive businesses.

“It will also encourage business-savvy migrants to invest, settle, and create jobs across the country, by offering extra points for expanding or starting businesses outside of the Auckland region.”

Points will also be offered for criteria including job creation, export potential, and business experience. A minimum capital investment of $100,000 will also be required to ensure applicants have the means to create high growth and innovative businesses.

“This is an ambitious new policy that will raise the bar and encourage innovative, export focused businesses, while again demonstrating a commitment to the regions.

“These changes are designed to attract talented, entrepreneurial migrants who can invest in our communities, grow profitable businesses, and create jobs for New Zealanders around the country.”
 
(Source Beehive, MWoodhouse)

03/12/13 - Immigration advisers’ regime to be reviewed

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Immigration Minister Michael Woodhouse has announced a review of the Immigration Advisers Licensing Act 2007, which regulates immigration advice and created the Immigration Advisers Authority (IAA) and the Immigration Advisers Complaints and Disciplinary Tribunal.

“The Act is now more than five years old and a review is timely to ensure the new system is working as effectively and efficiently as possible.

“Before the IAA was established, anyone could put up a sign and call themselves an immigration adviser. Requiring immigration advisers to be licensed and sign up to a code of conduct has seen a significant improvement in the quality of immigration advice and the credibility of the sector.

“There have been some teething issues as would be expected with the creation of a new regulatory structure. Some immigration advisers have raised concerns with me about the current regime and I expect these to be addressed in the review,” Mr Woodhouse says.

“Most licensed immigration advisers are good, honest and work hard for their clients. However, there are still too many reports of advisers acting in bad faith, in legal grey areas, and with questionable conduct. These people tarnish the whole profession.

“It’s in everyone’s interests to raise the bar and ensure the business of independent immigration advice continues to cement itself as a reputable industry. This review is an opportunity to consult with advisers to see how this can best be achieved.”

Mr Woodhouse says the review will also be considering the appropriateness of current penalties for breaching the IAL Act, and the process for approving an applicant’s license.

The review will be carried out by MBIE, which will consult with a wide range of stakeholders.

Findings are due to be presented to the Minister in June 2014.

(Source Beehive, MWoodhouse)

23/11/13 - Net migration reaches 10-year high as exodus to Australia slows

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Cooling job prospects across the Tasman are a factor in the population gain, says an economist.

New Zealand gained a net 3,000 permanent and long-term migrants last month, the most since June 2003.

It pushed the annual net inflow to 17,500, in contrast to a net loss of 2300 the previous year and well above the average gain of 11,300 over the past 20 years.

The turnaround is largely explained by a reduction in the net loss of people to Australia, which at 23,500 in the year to October was 15,800 fewer than the year before.

The latest annual loss resulted from 42,000 departures to Australia (down 11,700 from the October 2012 year), partly offset by 18,500 arrivals (up 4,200), Statistics New Zealand said. In both directions, most migrants were New Zealand citizens.

The latest year also saw a net inflow of 5,900 from Britain, 5,500 from China and 5,200 from India.

"Net immigration is now clearly on a cyclical upswing, partly due to more people moving to Auckland and Canterbury, but mainly due to fewer people moving to Australia as job prospects there have cooled," said Westpac economist Felix Delbruck.

"We expect net immigration to peak at over 30,000 next year, which would make this the biggest migration cycle since the early 2000s. The upturn in migration is a significant reason why we expect house prices to keep rising next year, albeit at a slower pace, despite lending restrictions and higher mortgage rates."

The boost to the labour supply from migration comes as demand is picking up.

ANZ's job ads indicator rose 4.5 per cent last month, seasonally adjusted, to be 9.75 per cent up on a year ago.

"Canterbury is sustaining a much higher level of job advertising than before the earthquakes, whereas Auckland and Wellington have similar numbers of total job ads as in early 2011," said ANZ economist Sharon Zollner. The data suggested the unemployment rate would continue to decline over coming quarters, she said.

The Ministry of Business, Innovation and Employment reported a 25 per cent rise in ads for construction and engineering workers last month compared with a year ago and a 17 per cent rise in the hospitality and tourism sector.

(Source NZ Herald, Brian Fallow)

21/11/13 - Immigration Amendment Bill (No 2) First Reading

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Mr Speaker, I move that the Immigration Amendment Bill (No 2) be now read a first time.

I nominate the Transport and Industrial Relations Committee to consider the Bill.

New Zealand is a nation built on immigration. The integrity of our immigration system is vital for the wellbeing of New Zealand. And this Bill further ensures that our immigration system protects our borders, is current in its responsiveness to the use of electronic systems, protects migrant workers from exploitation, and enables immigration officers to have the powers they need to enforce the Act.

Mr Speaker, this Bill does a number of things. It will ensure the immigration system operates more effectively by:

• strengthening the compliance regime
• responding to opportunities provided by new technology
• introducing measures to address the exploitation of migrant workers
• clarifying provisions in the principal Act, and
• addressing minor drafting issues.

I will talk through some of these key changes now.

The Bill extends the powers of immigration officers so they have the powers they need to effectively enforce the Immigration Act. The Bill will enable immigration officers to:

Undertake a personal search at the border. This will enable immigration officers to confirm the identity of passengers in those cases where passengers have concealed their identity documents.

• Search a property or place for identity documents in order to facilitate a deportation or turnaround.
• Enter and search an employer’s premises in order to search for unlawful workers, check documents and to interview employees to ascertain whether the employees and the employer are complying with the Act. This amendment will ensure immigration officers are more effective in checking an employer’s compliance with the Act - including where there is information that workers may be being exploited, and also determining whether workers are complying with the work-related conditions of their visa.
• Apply for and execute a search warrant. Currently, immigration officers apply to the court for a warrant and a police officer executes the warrant on their behalf. This amendment will result in more timely compliance operations and contribute to the effective functioning of the immigration system.

These new powers for immigration officers will be brought into force by Order in Council. This will only happen once appropriate systems for training staff in their use are in place.

Further measures to address the exploitation of migrant workers

The Bill includes two amendments that will protect migrant workers from exploitation. These legislative amendments are part of a package of actions this Government is taking to address the exploitation of migrants.

They demonstrate that this Government is taking the issue seriously and will come down hard on employers who take advantage of vulnerable migrant workers. We see this as vitally important, particularly in the context of re-building Canterbury.

Immigration plays a key role in boosting the supply of the significant number of workers required to rebuild Canterbury - and these migrant workers need to be protected from the small number of exploitative employers who seek to gain a commercial advantage by employing migrants on terms below minimum employment standards.

The first measure is to make exploitation of migrants on temporary entry class visas with work conditions an offence. There is presently an inconsistency in the legislation, in that employers who exploit unlawful migrant workers can face hefty sanctions, whereas those who exploit lawful migrant workers face much less serious penalties.

This Bill will address that mismatch by adding the exploitation of lawful workers as an offence under the Act. Employers who exploit migrant workers on temporary visas could face up to seven years imprisonment and/or a fine of up to $100,000.

The second amendment will see employers who are themselves recent migrants and who have held a residence class visa for less than 10 years liable for deportation if they exploit migrant workers. This will act as a further deterrent and was a provision in the 1987 Act but not carried over when the Act was updated in 2009.

Mr Speaker, while changes to the law are important elements to improving protection for migrant workers, the most important factor in achieving this is for exploited workers to speak up, and I encourage those workers to do so in order that a brighter light can be shone on the practices of exploitive workers.

The Bill changes the way biometric information is collected to address gaps in identity management capability, to enable faster identification and to improve the Government’s ability to manage risk. These amendments will:

• Enable biometric information to be collected from persons already known to be liable for deportation or turnaround. The biometric information can then be used to compare against future applicants for entry to New Zealand and to help confirm their identity. This amendment will enhance identity management capability, leading to improved public safety and a reduction in the number of ineligible people entering or re-entering New Zealand.
• Enable a compulsion order to be sought, to require a person to allow their biometric information to be taken where that person is liable for deportation.
• Where a compulsion order is made, enable Police to use reasonable force to take the biometric information. This will help ensure a firm, fast and fair deportation process for people who do not have the right to remain in New Zealand.
• Enable biometric information to be collected from non-citizens arriving in New Zealand, either before or after they have been granted entry permission, while they are still within the Immigration Control Area.

The Bill will help ensure the Immigration Act has the ability to support the increased use of technology when the new immigration service delivery model is in place. Amendments will expressly allow the Ministry to serve notices electronically and allow the use of electronic communications in Immigration and Protection Tribunal proceedings. These amendments will help to provide a more efficient, modern and cost-effective service to our customers and other stakeholders.

The Bill makes changes to the way information on the passenger name records is provided, in order to improve the identification of travellers who may pose a risk or require further intervention, and to improve airline compliance with immigration law. The changes specify that the passenger name information can be accessed by the Ministry of Business, Innovation and Employment at specified times, without it having to make a formal request each time and that the information can be accessed for longer than the current 14 day period before and after the arrival of a craft. The information will be able to be used to identify patterns and trends which will help recognise and detect risks - leading to better protected borders and a safer New Zealand.

The Bill makes changes to the way in which immigration is funded so that the funding of the immigration system is sustainable into the future. It will enable the broadening of the scope and funding base of the Migrant Levy - renamed as the Immigration Levy.

The Bill clarifies that the ability to request personal information under the Privacy Act 1993 does not apply to reasons for decisions made using absolute discretion. This parallels the existing exclusion under the Official Information Act. It also includes a number of other miscellaneous provisions mostly of a minor or technical nature. These amendments generally reflect provisions inadvertently not carried over from the 1987 Immigration Act, clarify provisions in the 2009 Act, or address minor drafting issues.

I’m confident that when this bill is passed it will build on the strong immigration legislative framework already in place and I commend it to the House.

(Source M Woodhouse, Beehive)

21/11/13 - Immigration bill passes first reading

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A bill to crack down on employers who exploit migrant workers and improve the effectiveness of our immigration system has passed its first reading in Parliament today.

“The Immigration Amendment Bill (No 2) forms part of a package of actions this Government is taking to address the exploitation of migrants. It follows changes in June to encourage victims of exploitation to come forward without fear of being penalised,” Immigration Minister Michael Woodhouse says.

“Unscrupulous employers not only harm their staff, but also gain an unfair competitive advantage over good employers competing for business.”

Under the Bill, employers who exploit migrant workers will face a jail sentence of up to seven years, a fine not exceeding $100,000, or both. Migrant employers could also face deportation if the offence was committed within 10 years of gaining residence.

“The Government is taking tough action to tackle the issue and send the message that migrant exploitation will not be tolerated in New Zealand.

“The fundamental and overriding principle is that migrant workers have the same employment rights and protections as all other workers in New Zealand.

“This is particularly important in the context of the government’s commitment to rebuilding Christchurch where immigration plays a key role in boosting the supply of workers required.”

The Bill also extends the search powers of immigration officers so they can search an employer’s premises and talk to the people present to identify offending by employers. They will also be able to search for unlawful workers, check documents and ensure migrant employees are complying with the Act.

(Source Beehive)